House Passes Gulf Drilling Legislation: Oil Price Drops

By Admin
Yesterday, the Republican-led United States House of Representatives passed legislation to speed up the permit process for offshore oil exploration an...

 

Yesterday, the Republican-led United States House of Representatives passed legislation to speed up the permit process for offshore oil exploration and drilling in the Gulf of Mexico.  The legislation also opens up offshore exploration off the coast of the state of Virginia.  As a result, crude oil prices came tumbling down nine percent.  This has average Americans hoping that this will translate to lower prices at the pump.

House member Michael Burgess (R-Texas) states, “Here we are in the Senate today, and I would just mention to the Senate that our bill yesterday to expedite lease sales in the Gulf of Mexico, those very leases that have been delayed or canceled by the administration in the past year.  The fact that we're willing to expedite those lease sales had a profound effect on those people who like to speculate and hedge in the oil market.”

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

Renewable Geothermal Energy Pumps Up Heat’s Power Potential

Mining Safety: Bioleaching Bacteria Clean Toxic Mine Tailings

The Future of Batteries: A Distributed Approach to Energy Storage

Check out the latest issue of Energy Digital!

The Republican majority has been claiming that reopening offshore exploration in the Gulf would affect speculators in such a way that oil prices would fall, and the dramatic drop below $100 per barrel witnessed today reveals just that. 

However, the bill still faces a majority Democratic opposition in the U.S. Senate and White House.  Plus, the Federal Energy Information Administration has stated that major expansion in domestic offshore development would have little impact on world oil prices or U.S. gasoline prices. 

Share

Featured Articles

Formula 1 meets biofuel as DHL enables sustainable logistics

Introducing bio-fuelled trucks to the Formula 1 World Championship is a major step in decarbonising motorsport and a triumph for logistics firms DHL

The true definition and benefits of a smart city

‘Smart city’ is a term of the century, but how is this defined and why is it crucial for economic and social prosperity through energy optimisation?

Global renewable energy investment to battle the oil sector

With a significant level of investment in renewable energy globally, it’s about time that oil stepped aside to let sustainability take shape worldwide

Energy cyber threats: what are the motives for disruption?

Technology & AI

NEOM’s green hydrogen energy business sees financial close

Renewable Energy

Octopus Energy’s Electroverse launches business EV charging

Smart Energy